• The Centre on Friday released the endorsement guidelines for celebrities and social media influencers, mandating compulsory disclosure of monitory or material benefits of a product or a brand they are promoting through social media platforms. Failing to do so will attract a penalty of up to ₹50 lakh.
  • Releasing the guidelines, Union Consumer Affairs Secretary Rohit Kumar Singh said the disclosures must be prominently and clearly displayed in the endorsement and terms such as ‘advertisement’, ‘sponsored’ or ‘paid promotion’ should be used for all sort of endorsements.
  • The step, he said, is after considering the increased use of social media for promotional activities that go beyond advertisements or advertorials in print or electronic media.
  • The guide ‘Endorsements Know-hows!’, created for celebrities, influencers and virtual influencers on social media platforms, aims to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act.
  • “With the increasing reach of digital platforms and social media, such as Facebook, Twitter and Instagram, there has been a rise in the influence of virtual influencers, in addition to celebrities and social media influencers.
  • This has led to an increased risk of consumers being misled by advertisements and unfair trade practices by these individuals on social media platforms,” the Ministry of Consumer Affairs said.
  • The guidelines specify that disclosures must be prominently and clearly displayed in the endorsement, making them “extremely hard to miss”.
  • Benefits and incentives, and monetary or other compensation, trips or hotel stay, media barters, coverage and awards, free products with or without conditions, discounts, gifts and any family or personal or employment relationship come under material benefits according to the guidelines.
  • If there are violations, the penalty prescribed for misleading advertisements under the Consumer Protection Act 2019 will be applicable.
  • In that case, the Central Consumer Protection Authority (CCPA) can impose a penalty of up to ₹ 10 lakh on manufacturers, advertisers and endorsers and for repeated offences, a penalty of up to ₹ 50 lakh can be imposed.
  • The CCPA can also prohibit the endorser of a misleading advertisement from making any endorsement for up to one year and for subsequent contravention, prohibition can extend up to three years.


About ChinmayaIAS Academy - Current Affairs

Check Also

Should Constitution be amended to make Article 370 permanent

Syllabus: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates